The US Department of Health and Human Services (HHS) has unveiled a significant restructuring plan aimed at improving efficiency and reducing costs. The plan, announced on April 27, 2025, will consolidate divisions, reduce the workforce, and streamline functions.The restructuring plan by the U.S. Department of Health and Human Services (HHS) has sparked significant attention in the news

A leaked document revealed deeper insights into the restructuring, including a $40 billion budget cut and the creation of the Administration for a Healthy America (AHA). This new entity will consolidate several agencies and focus on chronic disease prevention

The plan proposes eliminating or reducing funding for various programs, including those related to HIV/AIDS prevention, chronic disease, and mental health.

The National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC) are among the agencies facing significant budget cuts.

The HHS restructuring plan includes several key highlights:

• Consolidation of Divisions:
  The 28 divisions within HHS will be consolidated into 15 new divisions. This consolidation aims to eliminate redundancy and improve coordination among different departments.

• Creation of the Administration for a Healthy America (AHA):

The AHA will combine multiple agencies, including the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, and Agency for Toxic Substances and Disease Registry.

• Strengthening CDC:

The Administration for Strategic Preparedness and Response will transfer to the Centers for Disease Control and Prevention, reinforcing its core mission to protect Americans from health threats.

• New Assistant Secretary for Enforcement:

This role will oversee the Departmental Appeals Board, Office of Medicare Hearings and Appeals, and Office for Civil Rights to combat waste, fraud, and abuse in federal health programs.

Workforce Reduction and Cost Savings

The restructuring plan involves reducing the workforce by about 10,000 full-time employees, from 82,000 to 62,000. This reduction is expected to result in a projected annual savings of $1.8 billion.

Streamlined Functions

The plan also includes centralizing core functions such as:

• Human Resources: Streamlining HR processes to improve efficiency and reduce costs.
• Information Technology: Upgrading IT infrastructure to support modernized operations.
• Procurement: Enhancing procurement processes to ensure better value for taxpayer dollars.
• External Affairs: Improving communication and coordination with external stakeholders.
• Policy: Developing and implementing policies that support the department’s mission.

Regional Office Reduction

The plan also involves reducing regional offices from 10 to 5. This reduction aims to eliminate redundancy and improve coordination among different regions.

Impact and Next Steps

The restructuring plan is expected to improve the efficiency and effectiveness of HHS operations. The department will implement the plan over the coming months, with a focus on minimizing disruption to essential services.

The HHS restructuring plan is a significant step towards modernizing the department and improving its ability to serve the American people. By streamlining operations, reducing costs, and improving coordination, HHS aims to better address the health needs of the nation.